\u3000\u3 China Vanke Co.Ltd(000002) 410 Glodon Company Limited(002410) )
Leading construction informatization, maintaining the “buy” rating
Considering that the company’s cloud transformation has entered a mature stage, we maintain the company’s net profit attributable to the parent company in 20222024 to be RMB 1.032, 1.346 and 1.726 billion, and EPS to be RMB 0.9, 1.1 and 1.4 per share. The current share price corresponds to 52.5, 40.3 and 31.4 times of PE in 20222024. Considering that the company is the leader of construction informatization, we maintain the “buy” rating.
The revenue and profit increased rapidly, and the subscription mode strengthened its ability to resist risks
In 2022q1, the company achieved a total operating revenue of 1.131 billion yuan, a year-on-year increase of 33.21%; The net profit attributable to the parent company was 109 million yuan, with a year-on-year increase of 41.91%. According to our preliminary calculation, the growth rate of the company’s revenue after reducing cloud contract liabilities was about 28%, maintaining a rapid growth. The gross profit margin of the company’s sales was 85.41%, a year-on-year decrease of 4.4 percentage points, mainly due to the growth of solution business, the increase of purchased raw materials, inventory goods and implementation and delivery personnel, and the increase of related costs. The company’s net cash flow from operating activities was -384 million yuan, a year-on-year decrease of 215.32%. On the one hand, due to the relatively long settlement cycle in the middle of the year compared with the end of the year, the accounts receivable increased, and the prepaid office space leasing, material procurement and asset purchase expenses increased, resulting in the increase of prepayments; On the other hand, due to the increase of personnel and per capita salary and the increase of cash paid for purchasing goods and services.
Issue a new employee stock ownership plan and bind the core backbone
The company issued a new employee stock ownership plan, with a total number of participants expected to be no more than 841 and a duration of 36 months. The capital source of the stock ownership plan is the company’s accrued incentive fund, with a total capital of no more than 677908 million yuan. According to the closing price of the company’s shares of 49.28 yuan / share on April 13, 2022, the upper limit of the number of subject shares that can be held by the employee stock ownership plan is 1.3756 million shares, accounting for about 0.12% of the company’s total share capital. This equity incentive is conducive to binding the core backbone of the company and stimulating growth vitality.
The delivery of construction business was accelerated, and the group’s large-scale procurement model was rapidly promoted
In 2021, the newly signed contract amount of the company was rapid and large-scale. In the newly signed contracts in the whole year, the enterprise and project enterprise integration solution contracts accounted for about 15%, achieving a rapid breakthrough in the head customers; Project level BIM + smart site contracts account for about 85%, among which the large-scale procurement mode of project level single product group has been rapidly promoted, and more than half of labor and bill of materials product contracts come from large-scale procurement.
Risk warning: downward risk of real estate prosperity; Brain drain risk; New business expansion is less than expected risk.
